Shares of Allot (NASDAQ:ALLT) surged on Tuesday after the network intelligence and security solutions provider issued its fourth-quarter report. Allot beat analyst estimates across the board, producing double-digit revenue growth and a smaller-than-expected net loss. The stock was up about 30.4% at 1:05 p.m. EST today.
Fourth-quarter revenue was $30.6 million, up 14% year over year and $2.5 million higher than the average analyst estimate. The company's backlog at the end of 2019 was $138 million, up from $69 million at the end of 2018. During the year, Allot signed recurring security revenue agreements worth $85 million on the basis of maximum annual revenue potential.
Non-GAAP (adjusted) earnings per share came in at a loss of $0.05, worse than a loss of $0.01 in the prior-year period but $0.02 better than analysts were expecting. The company ended the year with $117.6 million in cash, up from $103.9 million at the end of 2018.
CEO Erez Antebi said: "We believe that the recurring revenue and growth we gain from these deals will have a significantly positive long-term impact on our future. We expect to win further such deals in the coming year."
For 2020, Allot expects total revenue between $135 million and $140 million, up from $110.1 million in 2019. At the midpoint, that guidance range represents year-over-year growth of about 25%.
The company also expects to sign more deals involving recurring revenue in 2020. Allot sees new deals totaling more than $140 million of maximum annual revenue potential being signed this year.
While the earnings beat was modest for Allot, guidance calling for accelerating revenue growth seems to have lit a fire under the stock. Shares of Allot are now up 80% over the past year, but still down 55% since peaking in 2012.